Posco Holdings, South Korea's leading steelmaker, saw its shares tumble 5.1% in intraday trading on Monday after reporting a substantial net loss for the fourth quarter of 2024, missing market expectations. The disappointing performance was primarily attributed to the ongoing industry downturn and a confluence of factors weighing on the company's profitability.

The steelmaker cited lower prices for steel and energy materials as a significant contributor to the squeeze on its profit margins. Furthermore, weak demand for steel products, both domestically and internationally, exacerbated the challenging business conditions. The oversupply of steel from China, which has led to a global glut, further compounded the industry's woes and intensified the competitive landscape.

Posco also recognized heavy asset impairment and inventory valuation losses after suspending operations at some of its aged steel mills in response to the industry downturn. Additionally, the company's battery material subsidiary, Posco Future M, reported its third consecutive quarterly net loss, reflecting the continued sluggish demand for electric vehicles globally, which has pressured revenue and earnings growth for battery makers and material suppliers.